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Over the past year Google has begun several programs to nudge advertisers to buy more mobile ads. The most significant, Enhanced Campaigns, forced advertisers to think about mobile by having them bid on ads across several devices at once instead of creating different campaigns for different devices.
October 16, 2014 - Google Inc. (NASDAQ: GOOG, GOOGL) today announced financial results for the quarter ended September 30, 2014.
“Google had another strong performance this quarter, with revenue up 20% year on year, at $16.5 billion,” said Patrick Pichette, CFO of Google. “We continue to be excited about the growth in our advertising and emerging businesses.” Google Inc. Announces Third Quarter 2014 Results [investor.google.com]
Google Inc. reported consolidated revenues of $16.52 billion for the quarter ended September 30, 2014, an increase of 20% compared to the third quarter of 2013. Google Inc. reports advertising revenues, consistent with GAAP, on a gross basis without deducting traffic acquisition costs (TAC). In the third quarter of 2014, TAC totaled $3.35 billion, or 23% of advertising revenues.
Q3 Financial Highlights
Revenues and other information - Google Inc. revenues for the quarter ended September 30, 2014 were $16.52 billion, representing a 20% increase over third quarter of 2013 revenues of $13.75 billion.
Sites Revenues - Our sites generated revenues of $11.25 billion, or 68% of total revenues, in the third quarter of 2014. This represents a 20% increase over third quarter of 2013 sites revenues of $9.38 billion.
Network Revenues - Our partner sites generated revenues of $3.43 billion, or 21% of total revenues, in the third quarter of 2014. This represents a 9% increase over third quarter of 2013 network revenues of $3.15 billion.
Other Revenues - Other revenues were $1.84 billion, or 11% of total revenues, in the third quarter of 2014. This represents a 50% increase over third quarter of 2013 other revenues of $1.23 billion.
International Revenues - Our revenues from outside of the United States totaled $9.55 billion, representing 58% of total revenues in the third quarter of 2014, compared to 58% in the second quarter of 2014 and 56% in the third quarter of 2013.
Our revenues from the United Kingdom totaled $1.63 billion, representing 10% of total revenues in the third quarter of 2014, compared to 10% in the third quarter of 2013.
The Internet search leader earned $2.81bn (£1.75bn) for the three months ending in September compared to income of $2.97bn in the same period last year - a fall of 5%.
Google's average ad prices in the third quarter dipped by just 2% from last year - the smallest decrease during what is now a three-year slump in the prices paid to Google for ads appearing alongside search results and other Web content.
Google has been able to offset the lower ad prices by inducing people to click on marketing links more frequently.
R&D = bad?
“People are certainly concerned about the expenses,” said Ben Schachter, an analyst with Macquarie Securities. “Revenue growth is slowing ...As long as the core business holds up, that’s fine, but if the core slows dramatically, that’s a problem.”
The markets aren't impressed with Google's result.
Well, they're obviously doomed if their revenues are up only 20 percent.
Revenues and profit are two different things.
This not a good time for falling profits when Europe is flexing it's muscles over tax